Associate Professor of accounting Dr. VanDenburgh was recently featured in the Wall Street Journal for his idea on how rising Tether Loans are adding risk to Stablecoin.
The article “Rising Tether Loans Add Risk to Stablecoin, Crypto World” discusses that the company, Stablecoin, “may not have enough liquid assets to pay redemptions in a crisis.”
According to Dr. VanDenburgh, “They should be giving the fair value on all the underlying assets. We don’t know if they can pay off dollar-for-dollar based on all their claims against them if they had a major run on the funds.”
Read more at Wall Street Journal.
